Asked by Peyton Miller on Jun 03, 2024
Verified
Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings?
A) FICA tax rate
B) wage and tax statement
C) FUTA tax rate
D) wage bracket and withholding table
FICA Tax Rate
The percentage of social security and Medicare taxes that both employees and employers must pay, based on wages paid.
Wage Bracket
A range or category of income levels used to calculate tax withholdings or determine pay scales based on earnings.
Withholding Table
A chart or table used by employers to determine the amount of tax to withhold from an employee's paycheck based on earnings and tax status.
- Discern the assortment of taxes and deductions integral to figuring net salary.
- Recognize differences between gross pay, net pay, and taxable earnings.
Verified Answer
ZK
Zybrea Knight
Jun 03, 2024
Final Answer :
D
Explanation :
The wage bracket and withholding table would be used to compute the federal income taxes to be withheld from an employee's earnings. The FICA tax rate is used to calculate Social Security and Medicare taxes, the wage and tax statement (or W-2 form) reports an employee's income and taxes paid over the course of a year, and the FUTA tax rate is used to calculate federal unemployment taxes.
Learning Objectives
- Discern the assortment of taxes and deductions integral to figuring net salary.
- Recognize differences between gross pay, net pay, and taxable earnings.